Ethereum ETF products have registered a huge recovery following a boost from BlackRock and Fidelity.
Through their respective Ethereum ETFs, the two asset management firms recorded inflows worth up to $130 million on December 23.
BlackRock’s ETHA saw up to $89.5 million of inflows, while Fidelity’s FETH bagged $46.4 million.
BlackRock and Fidelity Inflow Figures
It is noteworthy that BlackRock’s ETHA experienced a 1.3% inflow, which brought its cumulative inflows to $89.5 million.
The fund’s net assets amounted to $3.43 billion, representing 0.9% of Ethereum’s total supply. Similarly, Fidelity’s FETH saw $46.4 million in cumulative inflows.
Bitwise’s ETHW posted a cumulative inflows of $963,720.
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All other Ethereum ETFs recorded no inflows, leaving ETHA and FETH as the major Ethereum ETF bounce-back contributors.
Owing to the inflows recorded on Monday, the total inflows for the funds since their launch are already pushing over $2.46 billion. There are mixed investors’ sentiments from the market, with Ethereum ETF products recovering from previous setbacks.
Since the beginning of this December, there have been signs of growing investor trust. The Ethereum ETF inflows reached a record $400 million over an eight-day period.
As observed, this figure marked an All-time-high (ATH) for the offering launched for trading in July 2024.
Ethereum in the Crypto Market
Ethereum has demonstrated great resilience in the broader market correction in the last few weeks.
Amidst the visible bearish conditions, important technical validation has managed to help keep Ethereum relatively stable.
While other cryptocurrencies are falling sharply, Ethereum held its support around the $3,500 support level.
ETH’s price was traded at $3,511.66 at the time of writing, corresponding to a 5.27% increase in the last 24 hours.
The coin is gaining traction amongst investors as it accumulates over 20 million ETH. This signals long-term confidence in the cryptocurrency.
The trend of this accumulation signals sharp and persistent upward growth. It is also an indication of aggressive buying action.
Some analysts have noticed a bullish inverse head and shoulders pattern pointing to a potential breakout. These analysts are looking forward to a possible rally to $6,000. Per historical trends, the first few months of the coming year could be pivotal for ETH’s price.
Can BlackRock and Fidelity Drive ETH Price?
With persistent fund inflow, BlackRock and Fidelity may catalyze Ethereum in the push toward breaking its previous ATH.
In the meantime, the coin shows signs of a supply squeeze, as there is a large concentration of ETH in wallets. With most of the recent buyers HODLing, it means that fewer coins will flow into circulation each day.
This supply shock is likely to fuel the next price rally for Ethereum as it might fuel intense price pressure.
Also, more institutional investors are entering the market, suggesting their outlook on the coin has changed.
Moreover, the broader crypto market will change with Donald Trump entering the office as US President next month. Already, these investors are showing faith in Ethereum’s long-term potential.
Senior Bloomberg ETF analyst Eric Balchunas believes the future generally looks bright For Ethereum funds and related products.
